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$5.2 Million Penalty for Failure to Report Product Hazards

Tuesday, June 06, 2017
Sandler, Travis & Rosenberg Trade Report

The Consumer Product Safety Commission reports that a Japanese company and two related companies have agreed to pay a $5.2 million civil penalty to settle charges relating to defective off-road vehicles. The companies will also maintain a compliance program and a related system of internal controls and procedures.

According to a CPSC press release, between April 2012 and July 2014 the companies received more than 400 reports that floorboards on one ORV model were cracking or breaking during normal operation due to impact with, or penetration by, debris from outside the vehicle. The CPSC alleged that the companies failed to immediately report this defect, underreported the number of associated incidents, and failed to report similar incidents involving two other ORV models.

Any interested person may ask the CPSC not to accept this agreement or otherwise comment on its contents by filing a written request no later than June 20.

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